unemployment. The public sector is decomposed into general government and an unfunded pension system with a tax benefit linkage … society. We find that lowering the pension replacement rate and increasing the retirement age can have strong labor market … effects. They strengthen labor supply both in terms of job search intensity, leading to lower unemployment rates, and hours …

, retirement, and on-the-job training. Starting with a passive fiscal strategy, we find that aging might reduce per capita income …. A comprehensive reform package, including an increase in the effective retirement age to 68 years and several other …